Oman Leads the Way in Green Hydrogen with First Major Offtake Agreement

Oman Leads the Way in Green Hydrogen with First Major Offtake Agreement

Image Source: Asia Pathways

A significant milestone has been reached in the green hydrogen industry with the signing of the first major offtake agreement between non-affiliated companies. This deal cements Oman’s position at the forefront of green hydrogen development.

Key Points:

  • Agreement Details: Yara, a Norwegian company, signed a long-term contract with ACME Cleantech (India) to purchase 100,000 tonnes of green ammonia annually starting in 2027.
  • Project Location: The green ammonia plant will be built on a 12 sq. km site in Duqm’s Special Economic Zone (SEZAD).
  • Project Timeline: Construction is underway with Phase 1 focused on meeting Yara’s offtake needs. Future expansion plans are in place.
  • Project Features: The facility will encompass a fully integrated system including solar and wind power generation, electrolysis for hydrogen production, ammonia synthesis, and dedicated infrastructure for exporting ammonia.
  • Certification Challenges: The evolving nature of green hydrogen certification standards across regions like Europe and Asia presents a challenge for project developers like ACME. The company is working with certification bodies to advocate for standardized methods.
  • Oman’s Role: The Omani government, through Hydrom (its green hydrogen agency), has facilitated project development by providing land, pre-certification frameworks, and overseeing legacy agreements.

Oman’s Competitive Advantage:

  • This agreement showcases Oman’s strategic location for exporting green hydrogen derivatives like ammonia to Europe and Asia.
  • The presence of established companies like ACME and DEME Concessions, partnering with Omani entities, further strengthens Oman’s position in the green hydrogen race.

Looking Ahead:

With this landmark agreement and ongoing project development through Hydrom’s initiatives, Oman is well-positioned to become a major player in the global green hydrogen market. Standardized certification methods and wider market demand for green hydrogen will be crucial for continued success.

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